Essential Information to Provide When Applying For a New Housing Loan

New home buyers always feel perplexed by the huge amount of paperwork that is involved when applying for a home loan. They are not alone, because seasoned buyers feel the same way too when refinancing. Still, in order to successfully purchase that dream house and start a whole new life, you will have to tackle that housing loan. Remember that the lenders are the ones who will eventually make or break your dream as they are the ones who will approve or disapprove your housing loan. There are a few things to take extra care of, when applying for that loan. They are: 1) The sale agreement, 2) Your personal information, 3) Your employment history, 4) Your financial information

The Sales Agreement

One of the most important pieces of document that is required for your housing loan application. A lender can determine details of the property that you are planning to buy, from that piece of document. From that agreement, your lender will then determine the asset price of the property and use it as one of the factors in determining how much will they lend to you.

Your Personal Information

As usual, you will have to provide information such as your name, date of birth, gender and etc. Most probably, you may have to provide information such as the number of dependents that you have, your present level of education and etc. You may find it strange that you have to provide so much information which you may deemed as irrelevant to the purchase of your house. However, the banks, after long years of operations, have work out a formula which includes all these information to determine if you are a good credit risk. Without all these information, they will not be able to process your loan properly.

Your Financial Information

It is never just about how much you earn. More importantly, it is about how much you spend relative to how much you earn. You will have to fill in details about the different kinds of credit facilities that you may own. The kinds of credit facilities that you may own could be: credit cards, personal loans, education loans, car loans, housing loans, renovation loans and etc. Some of your credit facilities may be on revolving terms and a good example of it is a credit card. You may not use that credit card often and think of not filling that in, because you feel that its inclusion may decrease your credit profile. Just include it and state how much of it do you use per month. Honesty is always a factor highly valued during loan applications.

Your Employment History

Your lenders will want to know if you are still gainfully employed and if you will be able to meet the monthly installment payments. Certain professions are also looked upon favorably by your lenders and is a plus when applying for that home loan. You will be require to fill up this information in the application form and it will also be reflected when you submit it together with your CPF contribution history. The worst thing to do is to cheat on your lenders and lie to them that you are still employed when you are not. You may not be able to meet the monthly housing payment with the decrease in your income cash flow and that may prompt them to do a foreclosure on your new house. A foreclosure is never beneficial for both your lender and you.

Do You Think You Might Be Paying Too Much For Your Housing Loan?

You took up a housing loan package with a bank couple of years back. Just how many years has it been since the last refinance or that new purchase? Maybe you can not recall due to your heavy workload and various lifestyle commitments. Are you paying too much for your housing loan right now?

Many consumers often wonder if they are paying too much for their housing loan. This is especially so when consumers tries to refinance by themselves without the full knowledge of the mortgage market. After they signed that piece of paper called the “Letter of Offer”, they start to think: “Hey, there might be a better housing loan package out there and I might be signing away with a sub standard loan right here!” This type of mentality is very common as everyone wants the best for themselves. There are some steps which you can undertake to prevent the above situation from happening.

Before I go on, there is one important point to clarify. There is nothing such as the best housing loan available. Everybody has different financial and credit profile. What your mortgage advisor can offer you is the best housing loan package according to your credit profile. To know if you are really paying too much for that housing loan also depends a lot on your mortgage advisor. Your bank officer can only offer you the packages from his bank. That can really limit your choice and increases the probability of you paying more for your housing loan. By working with the right advisor, you expose yourself to more choices and can greatly enhance your shopping experience.

Alternatively you can try to minimize your payment by making sure that you shop around extensively for your lender. If you are a busy professional, try using the service of a mortgage broker or consultant, they can help you shortcut the process by offering you the best rate for your financial profile.

Once you have decided on a specific housing, take note of the expiry date of the lock in period. Key in a reminder in your organizer scheduled approximately about six months before the expiry of your lock in period, asking you to fix an appointment with your mortgage advisor to explore refinancing options. Do not fall into the habit of comparing your housing loan to other packages right after you have signed the contract. Anyway, to try to change your housing loan right now might evoke several penalties from the bank. Although your mortgage broker can assist you in getting another bank to pay off those penalties, it is only worth considering for certain people in the right situation.

SBI Home Loans – Find Why SBI Housing Loan Rates Are Attractive!

SBI home loans is one of the most attractive loans among the loans offered by the India housing finance companies. SBI housing loan rates are more attractive and cheaper than other companies which helps you to get CHEAPER LOANS and save a lot of money. It also offers unique products for NRI like SBI NRI Home Loan.

Why SBI Housing Loan Rates are attractive:

  • SBI Housing Loans offers LOW INTEREST RATES for home loans. It also charges interest on daily reducing balance which is a very good attractive feature offered by SBI. By this, the loan applicants can save some thousands of rupees, which they have to pay as interest otherwise to the banks. The daily reducing balance starts from the date at which the loan is sanctioned.
  • It offers free personal accident insurance cover for the loan applicants.
  • It charges very low processing charges to your application.
  • It does not charges any prepayment charges, if you close your loan before the actual time. Other banks charge around 2% to 5% of the pending loan amount as prepayment charges if you wish to close. This benefit offered by SBI helps the applicants to close their debt, if they get any surplus funds from their savings.
  • There is no upper limit fixed by the banks to apply. You can apply for a maximum amount depending on your income. You can club the income of your children or spouse to get more amount.

What is the Next Step?

  • Get further details required to apply for the loan. The details would be available from leading websites.